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For Questions 9 and 10 use the following information The yield rate is 8% t(t+1)v'R. 363.64 1,983.48 5,409.48 10,928.20 18,627.60 37,312.40 Rt V'Rt tv'Rt 3
For Questions 9 and 10 use the following information The yield rate is 8% t(t+1)v'R. 363.64 1,983.48 5,409.48 10,928.20 18,627.60 37,312.40 Rt V'Rt tv'Rt 3 4 5 Total 200 400 600 800 1,000 3,000 181.82 330.58 450.79 546.41 620.92 2,130.52 181.82 661.16 1,352.37 2,185.64 3,104.60 7,485.59 Question 9 Estimate the price of this investment at 9% using the modified duration and convexity. (Do no calculate the price directly) P(996) Question 10 Your portfolio consists of the above investment and a 5-year 1,000 bond with 80 annual coupons that sells at par. Find the Macaulay duration of this portfolio at the 10% yield rate. Macaulay duration of portfolio Please show your work below For Questions 9 and 10 use the following information The yield rate is 8% t(t+1)v'R. 363.64 1,983.48 5,409.48 10,928.20 18,627.60 37,312.40 Rt V'Rt tv'Rt 3 4 5 Total 200 400 600 800 1,000 3,000 181.82 330.58 450.79 546.41 620.92 2,130.52 181.82 661.16 1,352.37 2,185.64 3,104.60 7,485.59 Question 9 Estimate the price of this investment at 9% using the modified duration and convexity. (Do no calculate the price directly) P(996) Question 10 Your portfolio consists of the above investment and a 5-year 1,000 bond with 80 annual coupons that sells at par. Find the Macaulay duration of this portfolio at the 10% yield rate. Macaulay duration of portfolio Please show your work below
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